3 Types Of Grand Strategies

3 Types Of Grand Strategies
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Strategy 1
Growth Strategy - common for new industries or industries experiencing rapid growth and gaining new external opportunities. Can be appealing and may lead to great success but can be very risky. Focusing on growth may cause firms to fail to pay proper attention to efficiency, the needs of current customers or even safety.
Strategy 2
Stability Strategy - selected when managers want to protect the existing market share or after completing a phase of rapid growth or divestment. Allows managers to concentrate on increasing the internal strengths of the firm.
Strategy 3
Retrenchment Strategy - chosen when management is faced with declining performance due to internal weakness and external threats. Cutbacks on hiring, reducing salaries and selling of assets may be necessary.
Grand strategy selection matrix
SWOT analyses can help with choice of a grand strategy. Numerous environmental opportunities and substantial internal strength - GROWTH Critical internal weakness and numerous environmental opportunities OR Substantial internal strengths and major environmental threats - STABILITY Critical internal weakness and major environmental threats - RETRENCHMENT

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